Kimpton® Hotels & Restaurants
Bottom line
- Total investment — including a $100K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100.
- 65 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Kimpton® Hotels & Restaurants unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Overview
About
Kimpton franchisees operate upscale boutique hotels and associated restaurants/bars, typically 100-300 rooms, managing daily operations including housekeeping, front desk, food & beverage service, and maintenance while paying 6% royalties on room revenue plus 1% on F&B sales under the Kimpton brand standards and systems.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Kimpton presents elevated risk due to undisclosed financial performance, extensive litigation, unprotected territories, and aggressive expansion that outpaces due diligence transparency.
Score breakdown · what drove the 62 / 100 rating
- 01HIGHSignificant litigation portfolio including data security breaches, licensee disputes, non-payment actions, and territorial conflicts suggesting operational and legal risk
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation and creates opacity around actual franchisee profitability
- 03MINORUnprotected territory creates direct competition risk from other Kimpton franchisees and company-owned locations without contractual safeguards
- 04MINOR60% YoY unit growth rate is extremely aggressive and may indicate unsustainable expansion or cannibalization concerns rather than organic strength
- 05MINORHigh royalty burden of 6% GRR + 1% F&B (7% blended average) compounds profitability pressure in hospitality's thin-margin environment
- 06HIGHGoing concern status is FALSE but absence of positive disclosure suggests financial stability may not be independently verified
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
65 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Kimpton® Hotels & Restaurants · FDD (2024) PDF